Summary
A 58-year-old defense contractor employee was denied a security clearance due to unresolved financial issues under Guideline F (Financial Considerations). The applicant's financial problems began in 1995 and remain outstanding, with delinquent debts currently exceeding $36,600.00.
The Statement of Reasons detailed fifteen specific allegations of debt. These included $7,115.00 owed to Bank A, which incorporated $5,000 in original debt plus interest, and $3,274.00 to Bank B. Other significant debts included $3,676.00 to Creditor C, $4,060.00 to Creditor D, $2,541.00 to Collection Agency E, $3,035.00 to Creditor F, $1,964.00 to Creditor G, $1,597.00 to Creditor H, and $3,170.00 to Creditor K. Additional debts ranged from $182.00 to $4,000.00 across various creditors and agencies.
The denial was based on the applicant's long history of unresolved financial problems, the substantial total amount of delinquent debt, and the lack of demonstrated mitigation efforts over the past decade. The applicant admitted responsibility for the debts, but no mitigation was established, leading to the denial of clearance.
Why the Applicant Was Denied
- The applicant has a long history of unresolved financial problems dating back to 1995.
- The total amount of delinquent debts exceeds $36,600.00, which the applicant admits responsibility for.
- The applicant has not demonstrated any efforts to mitigate or resolve the cited debts over the past decade.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedHistory of Not Meeting Financial Obligations
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability and trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedFeb 2, 2007
- Answer filedFeb 23, 2007
- Hearing heldMay 11, 2007
- Decision dateMay 30, 2007
Cite For
- Denial Based on Long-term Financial Issues Under Guideline F
- Lack of Mitigation for Financial Problems
- Impact of Unresolved Debts on Security Clearance Eligibility